What are adverse influences in real estate appraisal?

Adverse influences in real estate appraisal are defined as factors that negatively affect the value of a property. This includes elements such as proximity to highways, landfills, industrial sites, or any other conditions that could diminish the desirability of a location. Such influences can lead to a decrease in market demand for the property, thereby impacting its overall value and appeal to potential buyers.

Recognizing these detrimental factors is essential for an appraiser, as they play a significant role in determining a property's worth. By identifying and analyzing adverse influences, appraisers can provide an accurate and comprehensive assessment of value, ensuring that clients have a clear understanding of the factors that contribute to property valuation.